Chunli Medical Posts Q1 2026 Profit Growth Despite 5.60% Revenue Dip

Bulletin Express
Apr 29

Beijing Chunlizhengda Medical Instruments Co., Ltd. (Chunli Medical) released its unaudited first-quarter 2026 results, showing resilient profitability amid softer top-line performance.

Financial Highlights (Jan–Mar 2026) • Revenue reached RMB 216.97 million, down 5.60% year on year. • Net profit attributable to shareholders rose 6.27% to RMB 61.71 million, driven by tighter cost control and higher investment income. • Net profit after deducting non-recurring items climbed 11.71% to RMB 58.87 million. • Basic and diluted earnings per share came in at RMB 0.16. • Weighted average ROE edged up 0.01 percentage point to 2.05%.

Operational Metrics • Operating costs fell 4.4% to RMB 73.20 million, while selling expenses declined 15.1% to RMB 39.16 million, reflecting streamlined sales efforts. • R&D spending remained stable at RMB 26.54 million, representing 12.23% of revenue versus 11.70% a year earlier. • Operating cash outflow narrowed sharply to RMB 10.93 million from RMB 75.34 million, supported by refined expense management and improved fund utilisation.

Balance Sheet Position (31 Mar 2026) • Total assets stood at RMB 3.63 billion, slightly lower than year-end 2025 due to reduced monetary funds. • Equity attributable to shareholders expanded 2.07% to RMB 3.05 billion, while total liabilities fell to RMB 0.58 billion from RMB 0.67 billion, underpinning a solid capital structure. • Cash and cash equivalents closed at RMB 1.29 billion, down RMB 112.65 million from the start of the year following dividend payments and capital expenditures.

Non-Recurring Items The quarter recognised RMB 2.84 million in net non-recurring gains, mainly comprising government grants (RMB 0.89 million) and fair-value gains on financial instruments (RMB 2.34 million), partially offset by tax effects.

Shareholder Structure As of 31 March 2026, Chunli Medical had 7,673 ordinary shareholders. Co-founders Shi Chunbao and Yue Shujun jointly held 56.22% of outstanding shares, maintaining majority control. Hong Kong Securities Clearing Company Limited owned 0.31%.

Outlook Management cited continued expense discipline and enhanced capital utilisation as key contributors to the improved profit and cash flow profile, despite subdued revenue. The company did not provide forward-looking guidance in the announcement.

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